DividendDiscountModel

Assumptions 1.Thefirmisexpectedtogrowatahighergrowthrateinthefirstperiod.
2.Thegrowthratewilldropattheendofthefirstperiodtothestablegrowthrate.
3.Thedividendpayoutratioisconsistentwiththeexpectedgrowthrate.
Inputsneeded 1.Lengthofhighgrowthperiod
2.Expectedgrowthrateinearningsduringthehighgrowthperiod.
3.Dividendpayoutratioduringthehighgrowthperiod.
4.Expectedgrowthrateinearningsduringthestablegrowthperiod.
5.Expectedpayoutratioduringthestablegrowthperiod.
6.CurrentEarningspershare
7.InputsfortheCostofEquity
Howthemodelworks Theexpecteddividendsareestimatedforthehighgrowthperiod,usingthepayout
ratioforthehighgrowthperiodandtheexpectedgrowthrateinearningspershare.
Theexpectedgrowthrateisestimatedeitherusingfundamentals:
Expectedgrowth=RetentionRatio*ReturnonEquity
Alternatively,youcaninputtheexpectedgrowthrate.
Attheendofthehighgrowthphase,theexpectedterminalpriceisestimatedusing
dividendspershareoneyearafterthehighgrowthperiod,usingthegrowthrate
instablegrowth,thepayoutratioinstablegrowthandthecostofequityinstable
growth.
Thedividendspershareandtheterminalpricearediscountedbacktothepresentat
thecostofequitychanges.
Ifyourcostofequityinstablegrowthisdifferentfromyourcostofequityinhigh
growth,thecostofequityinthesecondhalfofthestablegrowthperiodwillbe
adjustedgraduallyfromthehighgrowthcostofequitytoastablegrowthcostof
equity.
OptionsAvailable Youcanmakethismodelintoathreestagemodelbyansweringyestothequestion
ofwhetheryouwantmetoadjusttheinputsinthesecondhalfofthehighgrowth
period.Ifyoudo,Iwilladjustthegrowthrate,thepayoutratioandthecostof
equityfromhighgrowthlevelstostablegrowthlevelsgradually.
Youcanalsomakethisastablegrowthmodelbysettingthehigh
growthperiodtozero.
countModel
Inputsfromcurrentfinancials
NetIncome= $4,096.00 (incurrency)
Interestincomefromcashandmarketablesecurities(aftertax)= $132.00 Lastyear
DoyouwanttocapitalizeR&Dexpenses? Yes
BookValueofEquity= $12,072.00 $10,237.00 (incurrency)
CashandMarketableSecurities $2,475.00 $1,918.00
MarketValueofEquity= $357,352.00
Numberofsharesoutstanding= 62224.00
CurrentCapitalExpenditures= $11,986.00
CurrentDepreciation= $9,767.00
ChangeinnoncashWorkingcapitalinmostrecentyear= $214.00
NetDebtIssued(Paid)duringtheyear= ($1,951.00)
Doyouwanttonormalizethenetincome/earningspershare? No
Doyouwanttonormalizeyourreinvestmentneeds? No
Ifyes,thesewillbeyournormalizedvalues
NormalizedNetIncome= $2,655.84
NormalizedNetCapitalExpenditures= $4,242.61
NormalizedWorkingCapitalChange= $336.31
NormalizedNetDebtissued= $1,864.62

InputsforDiscountRate
Betaofthestock= 0.8
Riskfreerate= 2.00% (inpercent)
EquityRiskPremium 6.00% (inpercent)

InputsforHighGrowthPeriod
Lengthofhighgrowthperiod 5

Doyouwanttocalculatethegrowthratefromfundamentals? Yes (YesorNo)

Ifno,entertheexpectedgrowthrateinearningsinhighgrowthperiod=
Ifyes,thefollowingwillbetheinputstothefundamentalgrowthformulation:
AdjustedNetIncome= $4,325.80
NoncashROE= 52.00% (inpercent)
EquityReinvestmentRate= 110.60% (inpercent)
Doyouwanttochangeanyoftheseinputsforthehighgrowthperiod No
Ifyes,specifythevaluesfortheseinputs(Pleaseenterallvariables)
NoncashROE= 15.00% (inpercent)
EquityReinvestmentRate= 110.60% (inpercent)
Doyouwanttochangeanyoftheseinputsforthestablegrowthperi Yes
Ifyes,specifythevaluesfortheseinputs
ROE= 15.00% (inpercent)

Doyouwantmetograduallyadjustyourinputsduringthesecondha No

InputsforStableGrowthPeriod
Entergrowthrateinstablegrowthperiod? 2.00% (inpercent)

Stableequityreinvestmentratiofromfundamentalsis= 13.33% (inpercent)

Doyouwanttochangethisequityreinvestmentrate? No (YesorNo)
Ifyes,enterthestableperiodequityreinvestmentrate= (inpercent)

Willthebetatochangeinthestableperiod? Yes (YesorNo)

Ifyes,enterthebetaforstableperiod= 0.80
 NormalizedEarningsCalculation
Choosetheapproachtonormalizedearnings 2
Approach1:AverageNetIncomeoverlast5years
5 4 3
NetIncome $15,320.00 $11,460.00

Approach2:Normalizedreturnonequity
NormalizedROE= 22%
lizedEarningsCalculation

2 Current Average
$21,510.00 $25,330.00 $18,405.00
Normalizing Net Cap Ex
Choosetheapproachtonormalizedearni 1
Approach1:AverageNetCapExoverlast5years
5 4 3 2 Current Average
NetCapEx $2,141.00 $3,127.00 $3,812.00 $2,219.00 $2,824.75
EBIT $21,510.00 $14,970.00 $23,183.00 $35,872.00 $23,883.75
11.83%
Approach2:Industryaverage
Industryaveragenetcapex/EBIT 22%

Normalizing Non-cash Working Capital

Choosetheapproachtonormalizedearni 1
Approach1:AverageNetIncomeoverlast5years
Totalnoncashworkingcapitalcurrenty 1748
Revenuesincurrentyear= 263989
Revenueslastyear= 213199

Approach2:Industryaverage
IndustryaveragenoncashWC/Revenue 22%

Normalizing Net Debt Issued

Choosetheapproachtonormalizedearni 1
Approaches1or2:CurrentBookorMarketDebtRatio
Bookvalueofdebtincurrentyear= 8293

Approach2:Industryaverage
Industryaveragedebttocapitalratio= 15%
 R&DConverter
ThisspreadsheetconvertsR&Dexpensesfromoperatingtocapitalexpenses.Itmakestheappropriateadjustmentstooperatingincome,net
income,thebookvalueofassetsandthebookvalueofequity.

Inputs
OverhowmanyyearsdoyouwanttoamortizeR&Dexpenses 5 !Ifindoubt,usethelookuptable
Enterthecurrentyear'sR&Dexpense= $1,771.00 Themaximumallowedistenyear
EnterR&Dexpensesforpastyears:thenumberofyearsthatyouwillneedtoenterwillbedeterminedbytheamortizationperiod
Donotinputnumbersinthefirstcolumn(Year).Itwillgetautomaticallyupdatedbasedontheinputabove.
Year R&DExpenses
1 1678.00 !Year1istheyearpriortothecurrentyear
2 1529.00 !Year2isthetwoyearspriortothecurrentyear
3 1367.00
4 1267.00
5 1205.00
0
0
0
0
0

Output
Year R&DExpense Unamortizedportion Amortizationthisyear
Current 1771.00 1.00 1771.00
1 1678.00 0.80 1342.40 $335.60
2 1529.00 0.60 917.40 $305.80
3 1367.00 0.40 546.80 $273.40
4 1267.00 0.20 253.40 $253.40
5 1205.00 0.00 0.00 $241.00
0 0.00 0.00 0.00 $0.00
0 0.00 0.00 0.00 $0.00
0 0.00 0.00 0.00 $0.00
0 0.00 0.00 0.00 $0.00
0 0.00 0.00 0.00 $0.00
ValueofResearchAsset= $4,831.00 $1,409.20

Amortizationofassetforcurrentyear= $1,409.20

AdjustmenttoOperatingIncome= $361.80 !Apositivenumberindicatesanincreaseinoperatingincome(addto

Tax Effect of R&D Expensing $137

Look Up Table for Amortization Periods

IndustryName AmortizationPeriod
Advertising 2
Aerospace/Defen 10 NontechnologicalService 2years
AirTransport 10 Retail,TechService 3years
Aluminum 5 LightManufacturing 5years
Apparel 3 HeavyManufacturing 10years
Auto&Truck 10 Research,withPatenting 10years
AutoParts(OEM 5 LongGestationPeriod 10years
AutoParts(Repl 5
Bank 2
Bank(Canadian) 2
Bank(Foreign) 2
Bank(Midwest) 2
Beverage(Alcoho 3
Beverage(SoftD 3
BuildingMateria 5
CableTV 10
CanadianEnergy 10
Cement&Aggreg 10
Chemical(Basic) 10
Chemical(Divers 10
Chemical(Specia 10
Coal/AlternateE 5
Computer&Peri 5
ComputerSoftwa 3
Copper 5
DiversifiedCo. 5
Drug 10
Drugstore 3
EducationalServ 3
ElectricUtil.(Ce 10
ElectricUtility( 10
ElectricUtility( 10
ElectricalEquip 10
Electronics 5
Entertainment 3
Environmental 5
FinancialService 2
FoodProcessing 3
FoodWholesaler 3
ForeignElectron 5
ForeignTelecom 10
Furn./HomeFurn 3
Gold/SilverMini 5
Grocery 2
HealthcareInfo 3
HomeAppliance 5
Homebuilding 5
Hotel/Gaming 3
HouseholdProdu 3
IndustrialServic 3
Insurance(Divers 3
Insurance(Life) 3
Insurance(Prop/ 3
Internet 3
InvestmentCo.( 3
InvestmentCo.( 3
InvestmentCo.( 3
Machinery 10
Manuf.Housing/ 5
Maritime 10
MedicalServices 3
MedicalSupplies 5
MetalFabricatin 10
Metals&Mining 5
NaturalGas(Dist 10
NaturalGas(Dive 10
Newspaper 3
OfficeEquip&S 5
OilfieldServices 5
Packaging&Con 5
Paper&ForestP 10
Petroleum(Integr 5
Petroleum(Produ 5
PrecisionInstru 5
Publishing 3
R.E.I.T. 3
Railroad 5
Recreation 5
Restaurant 2
Retail(SpecialL 2
RetailBuilding 2
RetailStore 2
SecuritiesBroke 2
Semiconductor 5
SemiconductorC 5
Shoe 3
Steel(General) 5
Steel(Integrated) 5
Telecom.Equipm 10
Telecom.Service 5
Textile 5
Thrift 2
Tire&Rubber 5
Tobacco 5
Toiletries/Cosme 3
Trucking/Transp. 5
Utility(Foreign) 10
WaterUtility 10
mentstooperatingincome,net

indoubt,usethelookuptablebelow
emaximumallowedistenyears
eamortizationperiod

aseinoperatingincome(addtoreportedEBIT)
 Two-Stage Dividend Discount Model

Outputfromtheprogram
CostofEquity= 6.80%
NetIncome= $4,096

NetIncomewithoutinterestincomefromcas $3,964

GrowthrateinNetIncome= 57.51%
EquityReinvestmentRateforhighgrowthph 110.60%

Thedividendsforthehighgrowthphaseareshownbelow(upto10years)
1 2 3 4

ExpectedGrowthRate 57.51% 57.51% 57.51% 57.51%

NetIncome $6,243.64 $9,834.26 $15,489.80 $24,397.76

EquityReinvestmentRate 110.60% 110.60% 110.60% 110.60%

FCFE ($661.54) ($1,041.98) ($1,641.20) ($2,585.03)

CostofEquity 6.80% 6.80% 6.80% 6.80%

CumulativeCostofEquit 106.80% 114.06% 121.82% 130.10%

PresentValue ($619.42) ($913.51) ($1,347.25) ($1,986.92)

GrowthRateinStablePhase= 2.00%

Page
 Two-Stage Dividend Discount Model

EquityReinvestmentrateinnst 13.33%

CostofEquityinStablePhase= 6.80%
Priceattheendofgrowthphase= $707,725.70

PresentValueofFCFEsinhighgrowthphase= ($7,797.41)

PresentValueofTerminalEquityValue= $509,341.08

Valueofequityinoperatingassets= $501,543.67

ValueofCashandMarketableSecurities= $2,475.00

Valueofequityinfirm= $504,018.67
Valuepershare= $8.10

Page
 Two-Stage Dividend Discount Model

rogram

57.51%

$38,428.54

110.60%

($4,071.64)

6.80%

138.95%
($2,930.31)

Page
 Two-Stage Dividend Discount Model

Page
Ifyouareamultibusinesscompany,youcaninputthefollowing
Business Revenues EV/Sales EstimatedValue UnleveredBeta
HealthcareProdu $11,254.41 0.1715 $1,930.13 0.1768
Electronics $3,791.59 0.1600 $606.65 0.2396
0.0000 $ 0.0000
0.0000 $ 0.0000
0.0000 $ 0.0000
0.0000 $ 0.0000
0.0000 $ 0.0000
0.0000 $ 0.0000
0.0000 $ 0.0000
0.0000 $ 0.0000
0.0000 $ 0.0000
0.0000 $ 0.0000
Company $ 15,046.00 $2,536.79 0.1918
Ifyouareamultinationalcompanyandhaveabreakdownbycountry,youcanusethistable(forupto10countr
Country Revenues ERP Weight WeightedERP
Bolivia 800 10.40% 100.00% 10.40%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
0.00% 0.00% 0.00%
Total 800 100.00% 10.40%
Ifyouareamultinationalcompanyandhaveabreakdownonlybyregion,youcanusethistableinstead
Region Revenues ERP Weight WeightedERP
Africa 0 10.04% 0.00% 0.0000%
Asia 0 6.51% 0.00% 0.0000%
Australia&NewZealand 5.00% 0.00% 0.0000%
Caribbean 10 12.65% 11.11% 1.4052%
CentralandSouthAmerica 8.62% 0.00% 0.0000%
EasternEurope&Russia 7.96% 0.00% 0.0000%
MiddleEast 30 6.14% 33.33% 2.0480%
NorthAmerica 35 5.00% 38.89% 1.9444%
WesternEurope 15 6.29% 16.67% 1.0490%
Total 90 100.00% 6.4466%
sethistable(forupto10countries)

anusethistableinstead
Industry Name Number of firmsUnlevered beta corrected for ca
Advertising 65 0.73
Aerospace/Defense 95 0.92
Air Transport 25 0.52
Apparel 70 0.99
Auto & Truck 26 0.72
Auto Parts 75 1.23
Bank 7 0.49
Banks (Regional) 721 0.43
Beverage 47 1.24
Beverage (Alcoholic) 19 0.93
Biotechnology 349 1.07
Broadcasting 30 1.10
Brokerage & Investment Banking 49 0.33
Building Materials 37 1.07
Business & Consumer Services 179 0.75
Cable TV 16 0.71
Chemical (Basic) 47 0.85
Chemical (Diversified) 10 1.22
Chemical (Specialty) 100 0.95
Coal & Related Energy 45 0.73
Computer Services 129 0.82
Computer Software 273 1.04
Computers/Peripherals 66 1.13
Construction 18 0.77
Diversified 20 0.43
Educational Services 40 1.04
Electrical Equipment 135 1.07
Electronics 191 1.00
Electronics (Consumer & Office) 26 1.08
Engineering 56 1.13
Entertainment 85 0.99
Environmental & Waste Services 108 0.81
Farming/Agriculture 29 0.63
Financial Svcs. 76 0.58
Financial Svcs. (Non-bank & Insuranc 17 0.29
Food Processing 97 0.71
Food Wholesalers 18 1.04
Furn/Home Furnishings 36 1.03
Healthcare Equipment 193 0.77
Healthcare Facilities 47 0.56
Healthcare Products 58 0.89
Healthcare Services 126 0.72
Heathcare Information and Technolog 125 0.92
Heavy Construction 46 1.22
Homebuilding 32 1.23
Hotel/Gaming 89 0.90
Household Products 139 0.89
Information Services 71 0.81
Insurance (General) 26 0.71
Insurance (Life) 27 0.87
Insurance (Prop/Cas.) 53 0.63
Internet software and services 330 1.05
Investment Co. 65 0.47
Machinery 141 0.96
Metals & Mining 134 0.90
Office Equipment & Services 30 0.82
Oil/Gas (Integrated) 8 0.97
Oil/Gas (Production and Exploration) 411 0.51
Oil/Gas Distribution 80 0.55
Oilfield Svcs/Equip. 163 1.17
Packaging & Container 24 0.73
Paper/Forest Products 21 0.93
Pharma & Drugs 138 1.03
Power 106 0.40
Precious Metals 166 1.09
Publshing & Newspapers 52 0.87
R.E.I.T. 46 0.12
Railroad 10 0.92
Real Estate (Development) 22 0.85
Real Estate (General/Diversified) 11 0.62
Real Estate (Operations & Services) 47 0.94
Recreation 70 1.11
Reinsurance 3 0.47
Restaurant 84 0.71
Retail (Automotive) 30 0.80
Retail (Building Supply) 7 0.94
Retail (Distributors) 87 0.74
Retail (General) 21 0.80
Retail (Grocery and Food) 21 0.58
Retail (Internet) 47 1.02
Retail (Special Lines) 137 0.78
Rubber& Tires 4 0.80
Semiconductor 104 1.14
Semiconductor Equip 51 1.21
Shipbuilding & Marine 14 0.94
Shoe 14 0.81
Steel 37 0.91
Telecom (Wireless) 28 0.37
Telecom. Equipment 131 1.11
Telecom. Services 82 0.63
Thrift 223 0.01
Tobacco 12 0.83
Transportation 22 0.92
Trucking 28 0.77
Utility (General) 20 0.38
Utility (Water) 20 0.50
Total Market 7766 0.64
Market D/E RatioMarket Debt to CapitaEffective tax rateDividend PayoutNet Margin
52.57% 34.45% 6.04% 57.87% 3.90%
18.99% 15.96% 15.03% 32.15% 6.64%
109.48% 52.26% 13.79% 7.33% 2.82%
21.33% 17.58% 10.29% 24.23% 6.72%
97.56% 49.38% 4.71% 13.29% 3.82%
32.00% 24.24% 9.43% 13.68% 4.00%
84.19% 45.71% 22.17% 25.66% 27.21%
72.00% 41.86% 18.00% 23.74% 23.05%
22.16% 18.14% 3.95% 51.36% 12.77%
27.56% 21.60% 10.72% 17.61% 22.63%
9.15% 8.39% 1.13% 37.48% 6.88%
48.49% 32.65% 13.21% 3.91% 29.55%
400.56% 80.02% 13.44% 14.79% 9.72%
30.05% 23.11% 16.33% 32.53% 1.91%
29.23% 22.62% 13.41% 33.04% 4.34%
49.23% 32.99% 15.00% 20.41% 8.93%
29.67% 22.88% 6.27% 49.02% 4.28%
33.39% 25.03% 25.03% 38.85% 7.74%
16.30% 14.01% 12.74% 23.54% 11.19%
86.63% 46.42% 2.44% NA -10.81%
20.48% 17.00% 9.94% 20.37% 6.85%
8.68% 7.99% 6.16% 26.65% 20.47%
8.83% 8.11% 5.66% 26.59% 13.17%
30.47% 23.35% 9.82% 41.72% 3.02%
94.47% 48.58% 12.60% 43.67% 10.46%
39.03% 28.07% 11.84% NA -0.07%
13.74% 12.08% 7.49% 41.59% 6.36%
16.01% 13.80% 7.52% 23.96% 5.67%
40.30% 28.73% 8.97% 9.95% 9.36%
22.72% 18.51% 14.86% 11.49% 2.15%
25.98% 20.62% 4.85% 18.78% 13.75%
43.59% 30.36% 5.02% 64.93% 4.40%
41.12% 29.14% 9.01% 44.21% 1.05%
102.12% 50.52% 18.37% 17.92% 21.77%
331.47% 76.82% 9.77% 14.24% 15.55%
27.92% 21.83% 14.00% 40.76% 6.22%
16.79% 14.37% 10.69% 55.22% 2.02%
27.66% 21.67% 10.03% 23.65% 4.16%
17.26% 14.72% 5.80% 37.42% 9.41%
120.90% 54.73% 13.49% 92.58% 2.54%
19.80% 16.53% 8.76% 17.68% 4.26%
27.93% 21.83% 13.77% 18.09% 2.42%
14.52% 12.68% 6.09% 27.46% 7.52%
56.30% 36.02% 19.40% 30.50% 5.61%
56.61% 36.15% 6.68% 3.22% 14.11%
52.33% 34.35% 10.48% 167.01% 2.87%
19.33% 16.20% 9.51% 97.22% 9.63%
10.63% 9.61% 17.05% 21.19% 15.50%
46.14% 31.57% 19.19% 20.56% 5.02%
 66.67% 40.00% 17.82% 41.26% 4.85%
34.98% 25.91% 19.42% 18.85% 10.33%
4.16% 4.00% 4.59% 2.93% 14.18%
104.40% 51.08% 6.62% 30.57% 16.63%
17.50% 14.89% 13.02% 26.32% 7.72%
48.21% 32.53% 1.90% 147.59% 4.86%
55.08% 35.52% 12.81% 71.41% 2.68%
8.54% 7.87% 20.55% 30.89% 9.72%
156.15% 60.96% 6.29% 44.69% 7.68%
51.93% 34.18% 4.18% 118.15% 4.14%
20.29% 16.86% 10.73% 28.49% 3.52%
49.19% 32.97% 21.28% 33.21% 3.73%
51.99% 34.21% 8.20% 34.87% 4.05%
13.87% 12.18% 4.30% 45.10% 20.31%
85.11% 45.98% 16.03% 76.50% 7.26%
37.02% 27.02% 0.82% NA -18.86%
36.82% 26.91% 13.92% 85.21% 3.10%
569.79% 85.07% 2.48% 84.07% 73.16%
23.69% 19.15% 20.51% 30.19% 17.62%
24.90% 19.94% 3.00% NA -12.88%
17.30% 14.75% 8.72% 114.10% 4.80%
59.57% 37.33% 8.56% 19.30% 3.96%
25.13% 20.08% 8.81% 52.52% 7.29%
38.50% 27.80% 13.34% 9.16% 5.37%
27.57% 21.61% 15.17% 54.19% 7.73%
57.51% 36.51% 19.23% 5.80% 2.94%
22.18% 18.15% 21.97% 37.63% 5.56%
43.82% 30.47% 16.18% 35.27% 3.53%
35.62% 26.26% 25.03% 35.29% 2.90%
56.86% 36.25% 22.83% 64.89% 0.75%
5.06% 4.82% 9.80% 4.28% 3.37%
37.80% 27.43% 18.90% 24.23% 3.88%
109.78% 52.33% 15.21% 6.08% 2.68%
13.02% 11.52% 7.30% 47.53% 11.43%
16.97% 14.51% 5.13% NA -1.25%
65.35% 39.52% 4.99% 221.75% 0.27%
7.89% 7.31% 19.82% 24.17% 9.47%
45.91% 31.46% 14.13% NA -2.44%
105.14% 51.25% 11.54% NA -6.30%
10.77% 9.72% 6.90% 31.88% 14.98%
71.23% 41.60% 8.40% 174.84% 3.32%
5336.75% 98.16% 18.93% 1.03% 164.70%
20.83% 17.24% 14.23% 68.95% 24.69%
20.75% 17.19% 21.21% 65.38% 3.36%
78.48% 43.97% 27.93% 11.78% 3.17%
69.35% 40.95% 29.93% 92.59% 6.28%
57.90% 36.67% 14.52% 52.73% 14.20%
74.28% 42.62% 10.32% 33.16% 8.06%
Pre-tax Operating Margi ROE ROIC Sales/Capital EV/Sales Revenue Growth rate: Last 5 yea
14.58% 16.51% 51.55% 3.76 1.91 6.29%
11.39% 21.60% 57.83% 5.97 1.53 2.60%
7.20% 42.68% 13.27% 2.14 1.06 7.74%
13.85% 17.87% 22.17% 1.78 2.22 3.27%
3.49% 22.05% 7.72% 2.32 0.90 9.97%
7.82% 17.54% 25.08% 3.54 0.86 3.06%
0.00% 15.03% 0.00% 0.29 5.18 6.99%
0.00% 9.52% 0.00% 0.26 5.06 7.50%
17.83% 27.62% 27.28% 1.59 3.02 6.92%
20.58% 18.28% 12.86% 0.70 4.69 2.69%
16.64% 6.77% 12.92% 0.79 10.72 14.17%
26.68% 74.10% 26.24% 1.13 4.14 3.13%
1.76% 9.25% 0.29% 0.19 5.66 7.96%
6.98% 6.78% 14.44% 2.47 1.37 1.77%
10.08% 12.48% 23.39% 2.68 1.68 3.45%
19.01% 26.62% 20.34% 1.26 2.73 6.86%
10.32% 8.80% 14.86% 1.54 1.65 1.50%
9.59% 24.33% 13.69% 1.90 1.51 4.24%
15.93% 22.10% 29.31% 2.11 2.17 8.76%
3.58% -14.66% 2.53% 0.73 1.64 4.17%
10.18% 39.46% 57.15% 6.24 1.13 3.87%
27.00% 21.53% 46.27% 1.83 4.55 8.59%
18.64% 24.55% 42.04% 2.39 2.00 -1.20%
6.56% 3.62% 5.61% 0.95 3.17 0.49%
14.41% 13.06% 4.94% 0.39 4.07 22.98%
8.16% -0.13% 13.61% 1.89 1.26 7.73%
13.25% 13.67% 35.15% 2.87 2.12 4.58%
8.03% 7.98% 11.52% 1.55 1.60 1.07%
7.76% 25.66% 16.85% 2.39 1.02 16.78%
5.23% 7.61% 21.76% 4.89 0.60 3.94%
19.80% 17.45% 29.60% 1.57 3.00 -1.37%
12.48% 8.28% 20.22% 1.71 2.18 12.46%
2.55% 4.82% 7.16% 3.09 0.41 12.62%
10.05% 15.50% 1.74% 0.21 6.91 10.81%
1.51% 6.45% 0.17% 0.12 8.65 3.22%
11.18% 15.94% 25.29% 2.63 1.64 4.90%
4.13% 17.74% 25.57% 6.93 0.54 0.63%
7.87% 12.99% 19.31% 2.73 1.18 -0.39%
20.53% 11.87% 29.20% 1.51 2.88 11.30%
10.95% 26.29% 14.54% 1.54 1.44 5.16%
11.00% 5.52% 14.47% 1.44 3.26 22.82%
5.08% 13.14% 38.67% 8.83 0.57 7.41%
13.42% 9.45% 21.23% 1.68 3.62 6.62%
10.05% 22.00% 13.10% 1.62 1.42 1.01%
8.97% 32.64% 10.22% 1.22 1.68 -3.54%
15.56% 4.50% 10.37% 0.74 3.44 6.47%
16.60% 21.68% 37.25% 2.48 2.50 7.01%
25.17% 22.24% 47.15% 2.26 4.40 4.45%
13.28% 4.08% 6.06% 0.56 1.59 2.95%
 8.70% 6.08% 6.11% 0.85 1.33 7.09%
14.59% 14.34% 11.86% 1.01 1.36 8.42%
18.84% 11.75% 21.66% 1.21 6.99 12.49%
7.01% 9.68% 2.15% 0.33 5.29 8.42%
12.59% 15.70% 28.02% 2.56 1.87 5.43%
14.50% 6.26% 15.12% 1.06 2.09 0.00%
8.99% 19.42% 24.24% 3.09 1.17 -3.24%
12.99% 18.31% 18.99% 1.84 1.22 -2.82%
-36.96% 6.74% -7.27% 0.21 6.10 9.37%
8.01% 12.66% 10.78% 1.40 1.91 10.85%
6.22% 13.18% 19.64% 3.53 0.70 9.78%
9.81% 15.61% 18.14% 2.35 1.26 10.38%
7.51% 15.98% 13.25% 1.92 1.18 5.47%
25.08% 19.71% 28.42% 1.18 3.97 19.49%
16.25% 8.70% 7.44% 0.55 2.74 2.90%
12.22% -8.92% 5.02% 0.41 2.40 60.95%
9.57% 7.05% 26.06% 3.16 1.57 0.72%
0.33% 12.55% 0.01% 0.03 32.89 23.69%
31.27% 19.85% 16.13% 0.65 3.88 5.16%
5.88% -4.29% 1.44% 0.25 7.07 5.89%
8.71% 1.02% 1.33% 0.17 12.03 -10.83%
9.57% 19.84% 8.55% 0.98 2.57 -2.04%
14.16% 18.03% 20.47% 1.59 2.28 8.46%
8.14% 6.05% 6.66% 0.94 1.05 22.40%
14.12% 27.46% 16.51% 1.38 2.88 5.32%
5.05% 30.79% 12.78% 3.14 0.85 8.11%
9.16% 23.12% 16.37% 2.29 1.50 6.03%
9.76% 12.92% 15.52% 1.90 1.54 11.30%
5.07% 17.68% 13.23% 3.48 0.72 3.31%
2.26% 10.91% 7.07% 4.06 0.51 0.97%
4.12% 18.36% 33.24% 8.95 3.31 2.54%
6.84% 17.29% 13.40% 2.42 1.11 4.20%
7.60% 45.41% 23.80% 3.69 0.54 2.95%
15.91% 13.14% 18.35% 1.24 2.80 3.85%
7.07% -1.21% 7.79% 1.16 2.42 -3.01%
10.59% 0.37% 6.64% 0.66 2.37 -0.82%
12.90% 24.27% 25.11% 2.43 2.44 7.22%
4.60% -6.67% 7.99% 2.02 0.84 -2.45%
-0.97% -15.63% -0.60% 0.70 2.79 4.25%
19.01% 15.67% 23.43% 1.32 2.84 3.73%
12.50% 5.78% 14.48% 1.26 1.98 7.19%
0.00% -79.47% 0.00% 0.02 66.04 8.47%
40.37% ### ### 3.17 4.57 3.55%
6.11% 14.75% 13.83% 2.87 1.48 7.86%
11.43% 16.01% 11.36% 1.38 1.56 0.08%
17.51% 7.34% 6.93% 0.56 2.63 -2.40%
29.18% 9.95% 8.54% 0.34 4.78 11.93%
9.66% 15.68% 6.52% 0.75 2.52 6.88%
Expected Earnings growth: Next 5 yea EV/EBITDA EV/EBIT
10.94% 7.77 10.40
12.28% 7.42 9.15
18.61% 6.00 9.32
15.33% 11.73 14.68
15.10% 6.40 8.92
16.28% 7.46 13.95
6.27% 4.87 4.87
7.75% 4.79 4.79
10.85% 12.74 15.58
17.83% 22.46 30.77
32.27% 14.45 35.82
7.63% 7.08 12.35
16.38% 7.44 9.69
18.44% 8.53 11.11
15.10% 10.86 15.23
14.59% 5.99 9.34
12.58% 9.70 11.11
14.10% 6.92 8.14
12.16% 10.09 12.87
6.32% 8.93 12.10
13.71% 32.19 61.51
17.88% 2.41 2.91
16.06% 7.98 12.94
10.17% 8.96 13.54
12.77% 7.87 13.74
14.41% 8.57 10.80
16.11% 6.63 9.28
16.00% 7.98 10.42
12.18% 9.53 12.22
13.00% 7.97 10.37
27.09% 8.44 12.78
12.52% 12.56 13.19
18.37% 10.10 12.53
15.01% 4.44 11.52
7.97% 9.73 12.80
12.49% 8.34 11.22
13.05% 14.37 21.77
19.00% 7.96 10.05
16.91% 21.15 23.16
33.62% 10.68 15.66
17.15% 11.12 13.50
14.67% 8.69 11.06
16.46% 8.87 12.52
13.54% 10.89 15.55
19.09% 1.37 1.37
28.01% 291.86 295.89
12.70% 23.16 31.64
13.09% 15.67 18.19
16.45% 12.22 16.02
10.18% 9.93 12.94
14.52% 10.36 21.66
23.42% 10.16 12.81
12.84% 9.78 12.07
15.12% 6.02 7.32
18.37% 6.90 8.75
14.31% 5.27 6.24
6.37% 5.41 10.26
20.64% 9.89 14.20
14.32% 8.72 12.77
15.71% 4.76 6.94
11.88% 12.02 17.73
14.41% 7.98 12.13
19.89% 7.57 11.20
7.77% 7.22 11.38
4.47% 4.39 5.81
11.28% 4.06 5.77
5.47% 9.57 11.98
14.18% 13.43 18.87
13.13% 8.92 21.70
13.70% 7.17 9.30
15.48% 14.89 26.86
11.79% 15.96 22.79
9.75% 10.30 10.45
15.05% 8.76 13.14
16.80% 7.25 8.11
21.65% 9.13 11.81
15.18% 9.89 14.69
10.91% 28.62 28.62
16.51% 11.50 14.65
24.65% 7.65 10.61
17.57% 9.02 12.12
41.10% 11.03 13.74
18.43% 12.23 15.74
18.01% 8.39 11.67
20.64% 8.27 12.98
12.79% 8.79 9.85
9.64% 6.98 10.58
16.71% 8.07 12.22
17.32% 14.09 16.98
13.40% 5.63 8.89
7.90% 6.74 8.51
8.84% 5.39 9.47
16.81% 5.08 12.05
14.37% 4.08 4.08
5.11% 9.48 10.30
6.06% 10.10 12.39
15.39% 6.19 10.96
Price/Book Trailing PE
2.04 31.25
3.11 15.79
3.68 14.60
3.38 21.64
2.27 15.39
1.26 15.84
0.98 16.58
1.32 16.43
4.54 19.92
4.56 31.24
1.67 29.27
4.09 22.28
2.77 31.77
3.18 19.75
3.60 17.57
1.33 29.76
3.94 77.29
3.57 46.69
2.38 16.19
3.04 28.46
5.15 237.12
1.67 13.29
1.49 15.66
1.79 17.08
1.44 16.05
2.34 22.95
1.90 15.11
1.89 44.34
2.38 27.83
1.97 20.13
2.29 16.99
1.98 22.15
2.93 24.85
0.90 31.52
2.09 17.80
2.18 21.64
3.89 54.59
3.23 16.08
2.54 49.55
3.07 35.36
3.75 18.49
2.21 30.55
2.29 34.78
3.90 31.49
0.72 20.40
1.11 16.65
5.25 181.13
1.31 64.45
4.36 39.49
 2.76 21.30
0.85 22.57
2.82 46.69
3.11 35.61
2.03 29.94
1.90 63.26
2.35 36.66
1.35 53.21
1.99 23.01
2.70 115.92
1.11 21.17
3.56 37.30
1.79 14.61
2.49 17.22
1.92 29.45
1.49 11.29
1.47 24.25
2.58 19.67
2.96 130.50
0.82 304.86
1.61 24.60
2.57 23.56
1.66 44.26
1.12 8.65
3.37 14.22
1.29 16.85
2.99 17.50
2.01 24.73
0.82 8.25
6.65 19.52
2.76 22.74
4.94 18.19
3.46 15.97
4.32 25.76
2.90 20.34
3.18 14.89
0.93 20.01
2.72 50.55
1.64 25.21
3.66 13.75
0.88 23.48
2.08 24.80
2.02 18.25
1.77 16.70
0.99 29.69
11.46 19.42
6.04 20.39
3.07 16.70
Country LongTermRating Adj.DefaultSpread
AbuDhabi Aa2 0.50%
Albania B1 4.50%
Andorra A3 1.20%
Angola Ba3 3.60%
Argentina B3 6.50%
Armenia Ba2 3.00%
Aruba Baa1 1.60%
Australia Aaa 0.00%
Austria Aaa 0.00%
Azerbaijan Baa3 2.20%
Bahamas Baa1 1.60%
Bahrain Baa2 1.90%
Bangladesh Ba3 3.60%
Barbados Ba1 2.50%
Belarus B3 6.50%
Belgium Aa3 0.60%
Belize Caa2 9.00%
Benin B2 5.50%
Bermuda Aa3 0.60%
Bolivia Ba3 3.60%
BosniaandHerzegovina B3 6.50%
Botswana A2 0.85%
Brazil Baa2 1.90%
Bulgaria Baa2 1.90%
BurkinaFaso B2 5.50%
Cambodia B2 5.50%
Cameroon B2 5.50%
Canada Aaa 0.00%
CapeVerde B2 5.50%
CaymanIslands Aa3 0.60%
Chile Aa3 0.60%
China Aa3 0.60%
Colombia Baa3 2.20%
CookIslands B1 4.50%
CostaRica Baa3 2.20%
Croatia Ba1 2.50%
Cuba Caa1 7.50%
Curacao B1 4.50%
Cyprus Caa3 10.00%
CzechRepublic A1 0.70%
DemocraticRepublicof B3 6.50%
Denmark Aaa 0.00%
DominicanRepublic B1 4.50%
Ecuador Caa1 7.50%
Egypt Caa1 7.50%
ElSalvador Ba3 3.60%
Estonia A1 0.70%
Fiji B1 4.50%
Finland Aaa 0.00%
France Aa1 0.40%
Gabon Ba3 3.60%
Georgia Ba3 3.60%
Germany Aaa 0.00%
Ghana B1 4.50%
Greece Caa3 10.00%
Guatemala Ba1 2.50%
Honduras B2 5.50%
HongKong Aa1 0.40%
Hungary Ba1 2.50%
Iceland Baa3 2.20%
India Baa3 2.20%
Indonesia Baa3 2.20%
Ireland Ba1 2.50%
IsleofMan Aa1 0.40%
Israel A1 0.70%
Italy Baa2 1.90%
Jamaica Caa3 10.00%
Japan Aa3 0.60%
Jordan B1 4.50%
Kazakhstan Baa2 1.90%
Kenya B1 4.50%
Korea Aa3 0.60%
Kuwait Aa2 0.50%
Latvia Baa2 1.90%
Lebanon B1 4.50%
Liechtenstein Aaa 0.00%
Lithuania Baa1 1.60%
Luxembourg Aaa 0.00%
Macao Aa3 0.60%
Macedonia Ba3 3.60%
Malaysia A3 1.20%
Malta A3 1.20%
Mauritius Baa1 1.60%
Mexico Baa1 1.60%
Moldova B3 6.50%
Mongolia B1 4.50%
Montenegro Ba3 3.60%
Montserrat Baa3 2.20%
Morocco Ba1 2.50%
Mozambique B1 4.50%
Namibia Baa3 2.20%
Netherlands Aaa 0.00%
NewZealand Aaa 0.00%
Nicaragua B3 6.50%
Nigeria Ba3 3.60%
Norway Aaa 0.00%
Oman A1 0.70%
Pakistan Caa1 7.50%
Panama Baa2 1.90%
PapuaNewGuinea B1 4.50%
Paraguay Ba3 3.60%
Peru Baa2 1.90%
Philippines Baa3 2.20%
Poland A2 0.85%
Portugal Ba3 3.60%
Qatar Aa2 0.50%
RasAlKaminah A2 0.85%
RepublicoftheCongo Ba3 3.60%
Romania Baa3 2.20%
Russia Baa1 1.60%
Rwanda B2 5.50%
SaudiArabia Aa3 0.60%
Senegal B1 4.50%
Serbia B1 4.50%
Singapore Aaa 0.00%
Slovakia A2 0.85%
Slovenia Ba1 2.50%
SouthAfrica Baa1 1.60%
Spain Baa3 2.20%
SriLanka B1 4.50%
St.Maarten Baa1 1.60%
St.Vincent&theGrenad B2 5.50%
Suriname Ba3 3.60%
Sweden Aaa 0.00%
Switzerland Aaa 0.00%
Taiwan Aa3 0.60%
Thailand Baa1 1.60%
TrinidadandTobago Baa1 1.60%
Tunisia Ba3 3.60%
Turkey Baa3 2.20%
Uganda B1 4.50%
Ukraine Caa1 7.50%
UnitedArabEmirates Aa2 0.50%
UnitedKingdom Aa1 0.40%
UnitedStatesofAmerica Aaa 0.00%
Uruguay Baa3 2.20%
Venezuela Caa1 7.50%
Vietnam B2 5.50%
Zambia B1 4.50%

Region Weighted Average: Default Spre Weighted Average: TRP

Africa 3.36% 10.04%
Asia 1.00% 6.51%
Australia & New Zealand 0.00% 5.00%
Caribbean 5.10% 12.65%
Central and South Ameri 2.42% 8.62%
Eastern Europe & Russia 1.98% 7.96%
Middle East 0.76% 6.14%
North America 0.00% 5.00%
Western Europe 0.86% 6.29%
TotalRiskPremium CountryRiskPremium
Region
5.75% 0.75% Middle East
11.75% 6.75% Eastern Europe & Russia
6.80% 1.80% Western Europe
10.40% 5.40% Africa
14.75% 9.75% Central and South America
9.50% 4.50% Eastern Europe & Russia
7.40% 2.40% Caribbean
5.00% 0.00% Australia & New Zealand
5.00% 0.00% Western Europe
8.30% 3.30% Eastern Europe & Russia
7.40% 2.40% Caribbean
7.85% 2.85% Middle East
10.40% 5.40% Asia
8.75% 3.75% Caribbean
14.75% 9.75% Eastern Europe & Russia
5.90% 0.90% Western Europe
18.50% 13.50% Central and South America
13.25% 8.25% Africa
5.90% 0.90% Caribbean
10.40% 5.40% Central and South America
14.75% 9.75% Eastern Europe & Russia
6.28% 1.28% Africa
7.85% 2.85% Central and South America
7.85% 2.85% Eastern Europe & Russia
13.25% 8.25% Africa
13.25% 8.25% Asia
13.25% 8.25% Africa
5.00% 0.00% North America
13.25% 8.25% Africa
5.90% 0.90% Caribbean
5.90% 0.90% Central and South America
5.90% 0.90% Asia
8.30% 3.30% Central and South America
11.75% 6.75% Australia & New Zealand
8.30% 3.30% Central and South America
8.75% 3.75% Eastern Europe & Russia
16.25% 11.25% Caribbean
11.75% 6.75% Caribbean
20.00% 15.00% Western Europe
6.05% 1.05% Eastern Europe & Russia
14.75% 9.75% Africa
5.00% 0.00% Western Europe
11.75% 6.75% Caribbean
16.25% 11.25% Central and South America
16.25% 11.25% Africa
10.40% 5.40% Central and South America
6.05% 1.05% Eastern Europe & Russia
11.75% 6.75% Asia
5.00% 0.00% Western Europe
5.60% 0.60% Western Europe
10.40% 5.40% Africa
10.40% 5.40% Eastern Europe & Russia
5.00% 0.00% Western Europe
11.75% 6.75% Africa
20.00% 15.00% Western Europe
8.75% 3.75% Central and South America
13.25% 8.25% Central and South America
5.60% 0.60% Asia
8.75% 3.75% Eastern Europe & Russia
8.30% 3.30% Western Europe
8.30% 3.30% Asia
8.30% 3.30% Asia
8.75% 3.75% Western Europe
5.60% 0.60% Western Europe
6.05% 1.05% Middle East
7.85% 2.85% Western Europe
20.00% 15.00% Caribbean
5.90% 0.90% Asia
11.75% 6.75% Middle East
7.85% 2.85% Eastern Europe & Russia
11.75% 6.75% Africa
5.90% 0.90% Asia
5.75% 0.75% Middle East
7.85% 2.85% Eastern Europe & Russia
11.75% 6.75% Middle East
5.00% 0.00% Western Europe
7.40% 2.40% Eastern Europe & Russia
5.00% 0.00% Western Europe
5.90% 0.90% Asia
10.40% 5.40% Eastern Europe & Russia
6.80% 1.80% Asia
6.80% 1.80% Western Europe
7.40% 2.40% Asia
7.40% 2.40% Central and South America
14.75% 9.75% Eastern Europe & Russia
11.75% 6.75% Asia
10.40% 5.40% Eastern Europe & Russia
8.30% 3.30% Caribbean
8.75% 3.75% Africa
11.75% 6.75% Africa
8.30% 3.30% Africa
 5.00% 0.00% Western Europe
5.00% 0.00% Australia & New Zealand
14.75% 9.75% Central and South America
10.40% 5.40% Africa
5.00% 0.00% Western Europe
6.05% 1.05% Middle East
16.25% 11.25% Asia
7.85% 2.85% Central and South America
11.75% 6.75% Asia
10.40% 5.40% Central and South America
7.85% 2.85% Central and South America
8.30% 3.30% Asia
6.28% 1.28% Eastern Europe & Russia
10.40% 5.40% Western Europe
5.75% 0.75% Middle East
6.28% 1.28% Middle East
10.40% 5.40% Africa
8.30% 3.30% Eastern Europe & Russia
7.40% 2.40% Eastern Europe & Russia
13.25% 8.25% Africa
5.90% 0.90% Middle East
11.75% 6.75% Africa
11.75% 6.75% Eastern Europe & Russia
5.00% 0.00% Asia
6.28% 1.28% Eastern Europe & Russia
8.75% 3.75% Eastern Europe & Russia
7.40% 2.40% Africa
8.30% 3.30% Western Europe
11.75% 6.75% Asia
7.40% 2.40% Caribbean
13.25% 8.25% Caribbean
10.40% 5.40% Central and South America
5.00% 0.00% Western Europe
5.00% 0.00% Western Europe
5.90% 0.90% Asia
7.40% 2.40% Asia
7.40% 2.40% Caribbean
10.40% 5.40% Africa
8.30% 3.30% Western Europe
11.75% 6.75% Africa
16.25% 11.25% Eastern Europe & Russia
5.75% 0.75% Middle East
5.60% 0.60% Western Europe
5.00% 0.00% North America
8.30% 3.30% Central and South America
16.25% 11.25% Central and South America
 13.25% 8.25% Asia
11.75% 6.75% Africa

Weighted Average: CRP

5.04%
1.51%
0.00%
7.65%
3.62%
2.96%
1.14%
0.00%
1.29%